Zimbabwe Stock Exchange to introduce automated trading system

Created: Friday, 22 June 2012 16:18

A new manual system is intended to reduce the risk of market manipulation. (Image source: Nick Benjaminsz) Plans are underway to introduce an automated trading system to the Zimbabwe Stock Exchange (ZSE), after the manual operations have impacted on the growth of the exchange

Securities Commission of Zimbabwe (SECZ) has faught for ZSE to be on an up-to-date automated system.

SECZ chairperson Willia Bonyongwe explained that, as one of the oldest stock exchanges in Africa and one that is still using the manual system, the ZSE has been surpassed by exchanges in East Africa, as well as nearby Botswana.

Bonyongwe said, "We need the ZSE to have a robust IT system backing that does not affect operations."

According to Bonyongwe, the lack of an up-to-date automated system at the ZSE has affected the growth of capital markets, due to the risk perception attached by potential investors.

Bonyongwe declared that an automated system would be much less open to market manipulation, fraudulent dealings, and financial crime. It is also believed to reduce risk in capital markets, therefore promoting market integrity and boosting investor confidence in Zimbabwe.

She added that if Zimbabwe had an automated system, it would not be facing liquidity problems.

A new board, with the intention of actively introducing an automated system to the exchange, is reported to have been put in place.

Additionally, the World Bank is reported to be providing technical support to the SECZ, to locate the necessary legislative framework in order to facilitate automation at the exchange.